LA LIFE INSURANCE SERIES 101 FINALS PAPER UPDATED
EXAM QUESTIONS AND ANSWERS GRADED A+
✔✔In a Viatical Settlement a third party purchases a policy from a terminally ill insured
for approximately _______ to _______% of the policy's face amount. - ✔✔60/80
✔✔With regard to delivery receipt requirements, which of the following is TRUE? -
✔✔Upon policy delivery, a producer must get the policyholders signed receipt
acknowledging delivery.
✔✔All of the following are correct regarding Key Employee Life Insurance, EXCEPT: -
✔✔Premiums are deducted from the employees salary.
✔✔Which of the following personal uses of Life Insurance is specifically designed to
provide benefits to the policyowner while the insured is still alive? - ✔✔Cash
Accumlation
✔✔With regard to termination and renewal of a license, Which of the following is
FALSE? - ✔✔A business entity producers license expires April 30 of each even-
numbered year.
✔✔Which of the following death benefit settlement options pays out a benefit that is
100% income tax-free to the recipient? - ✔✔Lump Sum
✔✔Warren and Wilma have a joint life policy. Warren dies and the policy pays nothing.
Later on, Wilma dies and the policy death benefits is paid to the beneficiary. This is
called a : - ✔✔Survivorship or second-to-die policy
✔✔Which of the following Annuities is known for having the highest surrender charge
percentages and the longest surrender charge time periods? - ✔✔Indexed Annuities
✔✔If an insured has a Life Paid Up at 75 policy, What would the beneficiary receive if
the insured died @ age 68? - ✔✔The Face Amount
✔✔The mortality rate is based on mortality tables which show life expectancy and the
death rate per________ people living in the US. - ✔✔1000
✔✔B's policy had a 1000 annual premium. B has not paid it for 2 years and wants to put
the policy back in force. The insurer charges 10% interest on overdue premiums. How
much will B have to pay to have coverage once again? - ✔✔2200.00
✔✔Ordinarily, who would not be the owner of a Juvenile policy from the outset? - ✔✔A
brother or sister
, ✔✔When the Life Insurance Policy's cash value equals the face amount of the policy
and the proceeds are paid to the policyowner, this is known as the policy's
___________. - ✔✔Endowment
✔✔What is the only way an Annuity can pay out income tax free benefit payments? -
✔✔Fund a Roth IRA and make a qualified distribution.
✔✔What is the " waiver of premium" called on a Universal Life Insurance policy? -
✔✔Waiver of Cost of Insurance
✔✔Which of the following Term Life insurance policies cannot be renewed? -
✔✔Decreasing
✔✔Most often, life policies pay death claims in a single lump sum. The options that
allow benefits to be paid other than lump sum are called _____________. -
✔✔Settlement Options
✔✔Should an insured become totally and permanently disabled two months before the
cut-off date for the waiver of premium rider: - ✔✔The Insured remains eligible for all
provisions.
✔✔First to die and last to die Life Insurance policies have in common all of the
following, EXCEPT: - ✔✔They both continue in force after one of the named insureds
dies.
✔✔Under Social Security, a worker needs 10 years of work to be considered
_________ insured? - ✔✔Fully
✔✔A married couple purchases a 250,000.00 Joint Life policy. When the older of the
two dies, What is the amount payable to the survivor? - ✔✔250,000.00
✔✔With a Life Income Payment Option, what happens at the annuitant's death? - ✔✔All
Payments cease
✔✔Which of the following is the most expensive premium mode overall? - ✔✔Monthly
✔✔What is the primary purpose of the reinstatement provision? - ✔✔To put a policy
back in force as if it had never lapsed.
✔✔Generally, Which of the following Annuities is not designed to guarantee the
principal value of the policy in stable interest rate environments? - ✔✔Variable
EXAM QUESTIONS AND ANSWERS GRADED A+
✔✔In a Viatical Settlement a third party purchases a policy from a terminally ill insured
for approximately _______ to _______% of the policy's face amount. - ✔✔60/80
✔✔With regard to delivery receipt requirements, which of the following is TRUE? -
✔✔Upon policy delivery, a producer must get the policyholders signed receipt
acknowledging delivery.
✔✔All of the following are correct regarding Key Employee Life Insurance, EXCEPT: -
✔✔Premiums are deducted from the employees salary.
✔✔Which of the following personal uses of Life Insurance is specifically designed to
provide benefits to the policyowner while the insured is still alive? - ✔✔Cash
Accumlation
✔✔With regard to termination and renewal of a license, Which of the following is
FALSE? - ✔✔A business entity producers license expires April 30 of each even-
numbered year.
✔✔Which of the following death benefit settlement options pays out a benefit that is
100% income tax-free to the recipient? - ✔✔Lump Sum
✔✔Warren and Wilma have a joint life policy. Warren dies and the policy pays nothing.
Later on, Wilma dies and the policy death benefits is paid to the beneficiary. This is
called a : - ✔✔Survivorship or second-to-die policy
✔✔Which of the following Annuities is known for having the highest surrender charge
percentages and the longest surrender charge time periods? - ✔✔Indexed Annuities
✔✔If an insured has a Life Paid Up at 75 policy, What would the beneficiary receive if
the insured died @ age 68? - ✔✔The Face Amount
✔✔The mortality rate is based on mortality tables which show life expectancy and the
death rate per________ people living in the US. - ✔✔1000
✔✔B's policy had a 1000 annual premium. B has not paid it for 2 years and wants to put
the policy back in force. The insurer charges 10% interest on overdue premiums. How
much will B have to pay to have coverage once again? - ✔✔2200.00
✔✔Ordinarily, who would not be the owner of a Juvenile policy from the outset? - ✔✔A
brother or sister
, ✔✔When the Life Insurance Policy's cash value equals the face amount of the policy
and the proceeds are paid to the policyowner, this is known as the policy's
___________. - ✔✔Endowment
✔✔What is the only way an Annuity can pay out income tax free benefit payments? -
✔✔Fund a Roth IRA and make a qualified distribution.
✔✔What is the " waiver of premium" called on a Universal Life Insurance policy? -
✔✔Waiver of Cost of Insurance
✔✔Which of the following Term Life insurance policies cannot be renewed? -
✔✔Decreasing
✔✔Most often, life policies pay death claims in a single lump sum. The options that
allow benefits to be paid other than lump sum are called _____________. -
✔✔Settlement Options
✔✔Should an insured become totally and permanently disabled two months before the
cut-off date for the waiver of premium rider: - ✔✔The Insured remains eligible for all
provisions.
✔✔First to die and last to die Life Insurance policies have in common all of the
following, EXCEPT: - ✔✔They both continue in force after one of the named insureds
dies.
✔✔Under Social Security, a worker needs 10 years of work to be considered
_________ insured? - ✔✔Fully
✔✔A married couple purchases a 250,000.00 Joint Life policy. When the older of the
two dies, What is the amount payable to the survivor? - ✔✔250,000.00
✔✔With a Life Income Payment Option, what happens at the annuitant's death? - ✔✔All
Payments cease
✔✔Which of the following is the most expensive premium mode overall? - ✔✔Monthly
✔✔What is the primary purpose of the reinstatement provision? - ✔✔To put a policy
back in force as if it had never lapsed.
✔✔Generally, Which of the following Annuities is not designed to guarantee the
principal value of the policy in stable interest rate environments? - ✔✔Variable
